PEOPLELibya has a small population in a large land area. Population density is about 50 persons per sq. km. (80/sq. mi.) in the two northern regions of Tripolitania and Cyrenaica, but falls to less than one person per sq. km. (1.6/sq. mi.) elsewhere. Ninety percent of the people live in less than 10% of the area, primarily along the coast. More than half the population is urban, mostly concentrated in the two largest cities, Tripoli and Benghazi. 50% of the population is estimated to be under age 15.

Native Libyans are primarily a mixture of Arabs and Berbers. Small Tebou and Touareg tribal groups in southern Libya are nomadic or seminomadic. Among foreign residents, the largest groups are citizens of other African nations, including North Africans (primarily Egyptians and Tunisians), West Africans and Sub-Saharan Africans.

HISTORYFor most of their history, the peoples of Libya have been subjected to varying degrees of foreign control. The Phoenicians, Carthaginians, Greeks, Romans, Vandals, and Byzantines ruled all or parts of Libya. Although the Greeks and Romans left impressive ruins at Cyrene, Leptis Magna, and Sabratha, little else remains today to testify to the presence of these ancient cultures.

The Arabs conquered Libya in the seventh century A.D. In the following centuries, most of the indigenous peoples adopted Islam and the Arabic language and culture. The Ottoman Turks conquered the country in the mid-16th century. Libya remained part of their empire--although at times virtually autonomous--until Italy invaded in 1911 and, in the face of years of resistance, made Libya a colony.

In 1934, Italy adopted the name "Libya" (used by the Greeks for all of North Africa, except Egypt) as the official name of the colony, which consisted of the Provinces of Cyrenaica, Tripolitania, and Fezzan. King Idris I, Emir of Cyrenaica, led Libyan resistance to Italian occupation between the two World Wars. From 1943 to 1951, Tripolitania and Cyrenaica were under British administration, while the French controlled Fezzan. In 1944, Idris returned from exile in Cairo but declined to resume permanent residence in Cyrenaica until the removal in 1947 of some aspects of foreign control. Under the terms of the 1947 peace treaty with the Allies, Italy relinquished all claims to Libya.

On November 21, 1949, the UN General Assembly passed a resolution stating that Libya should become independent before January 1, 1952. King Idris I represented Libya in the subsequent UN negotiations. When Libya declared its independence on December 24, 1951, it was the first country to achieve independence through the United Nations and one of the first former European possessions in Africa to gain independence. Libya was proclaimed a constitutional and a hereditary monarchy under King Idris.

The discovery of significant oil reserves in 1959 and the subsequent income from petroleum sales enabled what had been one of the world's poorest countries to become extremely wealthy, as measured by per capita GDP. Although oil drastically improved Libya's finances, popular resentment grew as wealth was increasingly concentrated in the hands of the elite. This discontent continued to mount with the rise throughout the Arab world of Nasserism and the idea of Arab unity.

On September 1, 1969, a small group of military officers led by then 28-year-old army officer Mu'ammar Abu Minyar al-Qadhafi staged a coup d'etat against King Idris, who was exiled to Egypt. The new regime, headed by the Revolutionary Command Council (RCC), abolished the monarchy and proclaimed the new Libyan Arab Republic. Qadhafi emerged as leader of the RCC and eventually as de facto chief of state, a political role he still plays. The Libyan Government asserts that Qadhafi currently holds no official position, although he is referred to in government statements and the official press as the "Brother Leader and Guide of the Revolution."

The new RCC's motto became "freedom, socialism, and unity." It pledged itself to remedy "backwardness", take an active role in the Palestinian Arab cause, promote Arab unity, and encourage domestic policies based on social justice, nonexploitation, and an equitable distribution of wealth.

An early objective of the new government was withdrawal of all foreign military installations from Libya. Following negotiations, British military installations at Tobruk and nearby El Adem were closed in March 1970, and U.S. facilities at Wheelus Air Force Base near Tripoli were closed in June 1970. That July, the Libyan Government ordered the expulsion of several thousand Italian residents. By 1971, libraries and cultural centers operated by foreign governments were ordered closed.

In the 1970s, Libya claimed leadership of Arab and African revolutionary forces and sought active roles in international organizations. Late in the 1970s, Libyan embassies were redesignated as "people's bureaus," as Qadhafi sought to portray Libyan foreign policy as an expression of the popular will. The people's bureaus, aided by Libyan religious, political, educational, and business institutions overseas, exported Qadhafi's revolutionary philosophy abroad.

Qadhafi's confrontational foreign policies and use of terrorism, as well as Libya's growing friendship with the U.S.S.R., led to increased tensions with the West in the 1980s. Following a terrorist bombing at a discotheque in West Berlin frequented by American military personnel, in 1986 the U.S. retaliated militarily against targets in Libya, and imposed broad unilateral economic sanctions.

After Libya was implicated in the 1988 bombing of Pan Am flight 103 over Lockerbie, Scotland, UN sanctions were imposed in 1992. UN Security Council resolutions (UNSCRs) passed in 1992 and 1993 obliged Libya to fulfill requirements related to the Pan Am 103 bombing before sanctions could be lifted. Qadhafi initially refused to comply with these requirements, leading to Libya's political and economic isolation for most of the 1990s.

In 1999, Libya fulfilled one of the UNSCR requirements by surrendering two Libyans suspected in connection with the bombing for trial before a Scottish court in the Netherlands. One of these suspects, Abdel Basset al-Megrahi, was found guilty; the other was acquitted. UN sanctions against Libya were subsequently suspended; full sanctions lift is contingent on Libya's compliance with the remaining UNSCRs, including acceptance of responsibility for the actions of its officials and payment of appropriate compensation.

GOVERNMENTLibya's political system is theoretically based on the political philosophy in Qadhafi's Green Book, which combines socialist and Islamic theories and rejects parliamentary democracy and political parties. In reality, Qadhafi exercises near total control over the government.

For the first 7 years following the revolution, Colonel Qadhafi and 12 fellow army officers, the Revolutionary Command Council, began a complete overhaul of Libya's political system, society, and economy. On March 3, 1977, Qadhafi convened a General People's Congress (GPC) to proclaim the establishment of "people's power," change the country's name to the Socialist People's Libyan Arab Jamahiriya, and to vest, theoretically, primary authority in the GPC. Qadhafi remained the de facto chief of state and secretary general of the GPC until 1980, when he gave up his office. He continues to control all aspects of the Libyan Government through direct appeals to the masses, a pervasive security apparatus, and powerful revolutionary committees. Although he holds no formal office, Qadhafi exercises absolute power with the assistance of a small group of trusted advisers, who include relatives from his home base in the Surt region, which lies between the rival provinces of Tripolitania and Cyrenaica.

The Libyan court system consists of four levels: summary courts, which try petty offenses, the courts of first instance, which try more serious crimes; the courts of appeals, and the Supreme Court, which is the final appellate level. The GPC appoints justices to the Supreme Court. Special "revolutionary courts" and military courts operate outside the court system to try political offenses and crimes against the state. Libya's justice system is nominally based on Sharia law.

POLITICAL CONDITIONSAfter the revolution, Qadhafi took increasing control of the government, but he also attempted to achieve greater popular participation in local government. In 1973, he announced the start of a "cultural revolution" in schools, businesses, industries, and public institutions to oversee administration of those organizations in the public interest. The March 1977 establishment of "people's power"--with mandatory popular participation in the selection of representatives to the GPC--was the culmination of this process.

The GPC is the legislative forum that interacts with the General People's Committee, whose members are secretaries of Libyan ministries. It serves as the intermediary between the masses and the leadership and is composed of the secretariats of some 600 local "basic popular congresses."

The GPC secretariat and the cabinet secretaries are appointed by the GPC secretary general and confirmed by the annual GPC congress. These cabinet secretaries are responsible for the routine operation of their ministries, but Qadhafi exercises real authority directly or through manipulation of the peoples and revolutionary committees.

In the 1980s, competition grew between the official Libyan Government and military hierarchies and the revolutionary committees. An abortive coup attempt in May 1984, apparently mounted by Libyan exiles with internal support, led to a short-lived reign of terror in which thousands were imprisoned and interrogated. An unknown number were executed. Qadhafi used the revolutionary committees to search out alleged internal opponents following the coup attempt, thereby accelerating the rise of more radical elements inside the Libyan power hierarchy.

In 1988, faced with rising public dissatisfaction with shortages in consumer goods and setbacks in Libya's war with Chad, Qadhafi began to curb the power of the revolutionary committees and to institute some domestic reforms. The regime released many political prisoners and eased restrictions on foreign travel by Libyans. Private businesses were again permitted to operate.

In the late 1980s, Qadhafi began to pursue an anti-Islamic fundamentalist policy domestically, viewing fundamentalism as a potential rallying point for opponents of the regime. Ministerial positions and military commanders are frequently shuffled or placed under temporary house arrest to diffuse potential threats to Qadhafi's authority.

Despite these measures, internal dissent continues. Qadhafi's security forces launched a preemptive strike at alleged coup plotters in the military and among the Warfallah tribe in October 1993. Widespread arrests and government reshufflings followed, accompanied by public "confessions" from regime opponents and allegations of torture and executions. The military, once Qadhafi's strongest supporters, became a potential threat in the 1990s. In 1993, following a failed coup attempt that implicated senior military officers, Qadhafi began to purge the military periodically, eliminating potential rivals and inserting his own loyal followers in their place.

Principal Government OfficialsDe facto Head of State--Mu'ammar Abu Minyar al-Qadhafi ("the Brotherly Leader and Guide of the Revolution.")Secretary of the General Peoples Committee for Foreign Liaison and International Cooperation--Abd al-Rahman Shalgham

ECONOMYThe government dominates Libya's socialist-oriented economy through complete control of the country's oil resources, which account for approximately 95% of export earnings, 75% of government receipts, and 30% of the gross domestic product. Oil revenues constitute the principal source of foreign exchange. Much of the country's income has been lost to waste, corruption, conventional armaments purchases, and attempts to develop weapons of mass destruction, as well as to large donations made to developing countries in attempts to increase Qadhafi's influence in Africa and elsewhere. Although oil revenues and a small population give Libya one of the highest per capita GDPs in Africa, the government's mismanagement of the economy has led to high inflation and increased import prices, resulting in a decline in the standard of living.

Libya's gross domestic product grew in 2001 due to high oil prices, the end of a long cyclical drought, and increased foreign investment following the suspension of UN sanctions in 1999. Despite efforts to diversify the economy and encourage private sector participation, extensive controls of prices, credit, trade, and foreign exchange constrain growth. Import restrictions and inefficient resource allocations have caused periodic shortages of basic goods and foodstuffs.

Although agriculture is the second-largest sector in the economy, Libya depends on imports in most foods. Climatic conditions and poor soils severely limit output, while higher incomes and a growing population have caused food consumption to rise. Domestic food production meets about 25% of demand. The U.S. Government has prohibited the importation of Libyan crude oil into the United States since March 1982, as well as strict controls on U.S.-origin goods intended for export to Libya. On January 7, 1986, the U.S. imposed economic sanctions against Libya which broadly prohibit U.S. persons from engaging in unauthorized financial transactions involving Libya, including, in part, the following: the export to Libya of all goods, services, or technology; the import of goods or services of Libyan origin; engaging in the performance of a contract in support of an industrial, commercial, or government project in Libya; or dealing in any property in which the Government of Libya has any interest. The economic sanctions also prohibit U.S. persons from working in Libya.

Although UN sanctions were suspended in 1999, foreign investment in the Libyan gas and oil sectors has been severely curtailed due to the United States' Iran and Libya Sanctions Act (ILSA), which caps the amount any foreign company can invest in Libya yearly at $20 million (lowered from $40 million in 2001).

FOREIGN RELATIONSSince 1969, Qadhafi has determined Libya's foreign policy. His principal foreign policy goals have been Arab unity, elimination of Israel, advancement of Islam, support for Palestinians, elimination of outside--particularly Western--influence in the Middle East and Africa, and support for a range of "revolutionary" causes.

After the 1969 coup, Qadhafi closed American and British bases on Libyan territory and partially nationalized all foreign oil and commercial interests in Libya. He also played a key role in promoting the use of oil embargoes as a political weapon for challenging the West, hoping that an oil price rise and embargo in 1973 would persuade the West--especially the United States--to end support for Israel. Qadhafi rejected both Soviet communism and Western capitalism and claimed he was charting a middle course.

Libya's relationship with the former Soviet Union involved massive Libyan arms purchases from the Soviet bloc and the presence of thousands of east bloc advisers. Libya's use--and heavy loss--of Soviet-supplied weaponry in its war with Chad was a notable breach of an apparent Soviet-Libyan understanding not to use the weapons for activities inconsistent with Soviet objectives. As a result, Soviet-Libyan relations reached a nadir in mid-1987.

After the fall of the Warsaw Pact and the Soviet Union, Libya concentrated on expanding diplomatic ties with Third World countries and increasing its commercial links with Europe and East Asia. Following the imposition of UN sanctions in 1992, these ties significantly diminished. Following a 1998 Arab League meeting in which fellow Arab states decided not to challenge UN sanctions, Qadhafi announced that he was turning his back on pan-Arab ideas, one of the fundamental tenets of his philosophy.

Instead, Libya pursued closer bilateral ties, particularly with North African neighbors Egypt, Tunisia, and Morocco. It also has sought to develop its relations with Sub-Saharan Africa, leading to Libyan involvement in several internal African disputes in the Democratic Republic of Congo, Sudan, Somalia, Central African Republic, Eritrea, and Ethiopia. Libya also has sought to expand its influence in Africa through financial assistance, ranging from aid donations to impoverished neighbors such as Niger to oil subsidies to Zimbabwe. Qadhafi has proposed a borderless "United States of Africa" to transform the continent into a single nation-state ruled by a single government. This plan has been moderately well received, although more powerful would-be participants such as Nigeria and South Africa are skeptical.

There have been no credible reports of Libyan involvement in terrorism since 1994, and Libya has taken significant steps to mend its international image. In 1999, the Libyan Government surrendered two Libyans suspected of involvement in the Pan Am 103 bombing, leading to the suspension of UN sanctions. On January 31, 2001, a Scottish court seated in Netherlands found one of the suspects, Abdel Basset al-Megrahi, guilty of murder in connection with the bombing, and acquitted the second suspect, Al-Amin Kalifa Fhima. Megrahi has appealed his conviction; the appeal began on January 23, 2002.

Full lifting of UN sanctions is contingent on Libyan compliance with its remaining UNSCR requirements on Pan Am 103, including acceptance of responsibility for the actions of its officials and payment of appropriate compensation. Libya did pay compensation in 1999 for the death of British policewoman Yvonne Fletcher, a move that preceded the reopening of the British Embassy in Tripoli, and paid damages to the families of the victims in the bombing of UTA Flight 772.

On November 13, 2001, a German court found four persons, including a former employee of the Libyan Embassy in East Berlin, guilty in connection with the 1986 La Belle disco bombing, in which two U.S. servicemen were killed. The court also established a connection to the Libyan Government. The German Government has demanded that Libya accept responsibility for the La Belle bombing and pay appropriate compensation.

U.S.-LIBYAN RELATIONSThe United States supported the UN resolution providing for Libyan independence in 1951 and raised the status of its office at Tripoli from a consulate general to a legation. Libya opened a legation in Washington, DC, in 1954. Both countries subsequently raised their missions to embassy level.

After Qadhafi's 1969 coup, U.S.-Libyan relations became increasingly strained because of Libya's foreign policies supporting international terrorism and subversion against moderate Arab and African governments. In 1972, the United States withdrew its ambassador. Export controls on military equipment and civil aircraft were imposed during the 1970s, and U.S. embassy staff members were withdrawn from Tripoli after a mob attacked and set fire to the embassy in December 1979. The U.S. Government declared Libya a "state sponsor of terrorism" on December 29, 1979.

In May 1981, the U.S. Government closed the Libyan "people's bureau" (embassy) in Washington, DC, and expelled the Libyan staff in response to a general pattern of conduct by the people's bureau contrary to internationally accepted standards of diplomatic behavior.

In August 1981, two Libyan jets fired on U.S. aircraft participating in a routine naval exercise over international waters of the Mediterranean claimed by Libya. The U.S. planes returned fire and shot down the attacking Libyan aircraft. In December 1981, the State Department invalidated U.S. passports for travel to Libya and, for purposes of safety, advised all U.S. citizens in Libya to leave. In March 1982, the U.S. Government prohibited imports of Libyan crude oil into the United States and expanded the controls on U.S.-origin goods intended for export to Libya. Licenses were required for all transactions, except food and medicine. In March 1984, U.S. export controls were expanded to prohibit future exports to the Ras al-Enf petrochemical complex. In April 1985, all Export-Import Bank financing was prohibited.

Due to Libya's continuing support for terrorism, the United States adopted additional economic sanctions against Libya in January 1986, including a total ban on direct import and export trade, commercial contracts, and travel-related activities. In addition, Libyan Government assets in the United States were frozen. When evidence of Libyan complicity was discovered in the Berlin discotheque terrorist bombing that killed an American serviceman, the United States responded by launching an aerial bombing attack against targets near Tripoli and Benghazi in April 1986. Since then, the United States has maintained its trade and travel embargoes and has sought to bring diplomatic and economic pressure to bear against Libya.

In 1988, Libya was found to be in the process of constructing a chemical weapons plant at Rabta, a plant which is now the largest such facility in the Third World. Libya is currently constructing another chemical weapons production facility at Tarhunah. Libya's support for terrorism and its past regional aggressions made this development a matter of major concern to the United States. In cooperation with like-minded countries, the United States has since sought to bring a halt to the foreign technical assistance deemed essential to the completion of this facility.

In 1991, two Libyan intelligence agents were indicted by federal prosecutors in the U.S. and Scotland for their involvement in the December 1988 bombing of Pan Am flight 103. In January 1992, the UN Security Council approved Resolution 731 demanding that Libya surrender the suspects, cooperate with the Pan Am 103 and UTA 772 investigations, pay compensation to the victims' families, and cease all support for terrorism. Libya's refusal to comply led to the approval of UNSC Resolution 748 on March 31, 1992, imposing sanctions designed to bring about Libyan compliance. Continued Libyan defiance led to passage of UNSC Resolution 883--a limited assets freeze and an embargo on selected oil equipment--in November 1993.

Promulgated in 1996, the Iran and Libya Sanctions Act (ILSA) sought to penalize non-U.S. companies which invest more than $40 million in Libya's oil and gas sector in any one year. ILSA was renewed in 2001, and the investment cap lowered to $20 million.

Libya refused to comply with its UNSCR requirements on Pan Am 103 until 1999, when it turned over two suspects for trial by a Scottish court in Netherlands. UN sanctions were subsequently suspended. The United States has continued to call on Libya to comply with its remaining requirements, including acceptance of responsibility for the actions of its officials and payment of appropriate compensation.